Fintech companies Urge the Federal Reserve to use Cryptocurrency

Faster Payments Task Force has compiled a report in which companies have made a strong case for the U.S Federal Reserve to adopt blockchain technology to ensure fast payments. The following companies submitted their proposals:

In total, there were five blockchain-based approach proposals by these companies but we will look at three of the most interesting.

Proposals by Hub Culture and Echo

Hub Culture and Echo proposed that the federal reserve should use solutions modelled on a distributed ledger technology which should have a Real-time Asset Interchange Ledger (RAIL) and a Real-time Asset Interchange Network (RAIN) that will make end-to-end global payments transactions a reality.

According to the proposal by these companies, the solution should also have a Unique Synchronized Identity (USI) linking existing accounts with the capability of lowering platform outlays and transaction costs and to reduce the time needed to deploy across the network supporting push and pull payments.

Proposals by Kalypton Group

On its part, Kalypton Group had a proposal for a full transaction processing engine and not just payments. According to the company, the solution has the ability to deliver blockchain-like functionality without limitations. The solution should incorporate a configurable service layer capable of implementing multiple use cases as well as supporting rapid, ongoing innovation by service providers.

The Proposal by WingCash

WingCash’s proposal had the most impact which requires the federal reserve to adopt the use of cryptocurrency. It recommends the use of the WingCash Faster Payment Network, a software platform to be owned and operated by the Federal Reserve in conjunction with the Governing Organization. The Federal Reserve will then have to issue digital currency or digital fed notes that should be tied to the domain “fednotes.com.”

WingCash also proposes that businesses be allowed to issue and define the characteristics of digital brand cash. Bradley Wilkes, the founder and CEO of Wing Cash was responsible for coming up with the proposal submitted by the company. In the event that the taskforce adopts his proposal, the Central Bank will soon be taking steps to bring the long-discussed “Fedcoin” concept to reality.

Previously, Central Banks in other jurisdictions such as the UK, China and Russia have expressed interests in issuing their own cryptocurrencies. However, for the U.S, the proposal by WingCash is the first of its kind to be addressed directly to the Federal Reserve.

WingCash, the company that made the most interesting proposal is software company based in Lehi, Utah. It runs a platform that makes it possible for financial institutions to present new offerings to customers. The offerings could be cross border transfers, immediate transfers or low-cost transfers. Additionally, the company enables closed-loop electronic loyalty, gift and reward programmes.